Client getting drilled with questions at bank

[Hereforthebeer]

Just wanted to see how many of you have had issues with clients going to their banks to get cashiers checks for annuities and such.. Seems like the the bank wants nothing more than to scare the shit out of them until they are confused and do nothing.. If you go to the bank with them, that makes the situation even worse. Was thinking we could share some tips on how to help those situations and how now to lose a deal to a $10 bank teller.

 

[DHK]

That's why you tell your clients that they want annuities from the insurance company (not the bank) sold only through insurance agents (rather than through banks).

But yeah, your concern is very real. However, if you didn't "button up" your sale, and it takes a branch manager to steer the client to their investment guy... then you may be to blame for that. Don't forget that it was a BANK MANAGER that had concerns about that Neasham's annuity client that raised all the 'red flags'.

It's the same thing when you call a 401(k) custodian. Before you make the call together with your prospective client, you tell them what's going to happen: They are going to try to save the assets and keep it "in house". We talked about the various options, we still want to go forward with what we've talked about, right? So when they bring it up, all you need to say is that you've reviewed all your options and you are confident with your decision.

Tell your client what to expect when they go to the bank. Tell them that bank people are afraid of the downsizing of locations and they do whatever they can to make sales and referrals to their internal partners to justify their positions. This is NORMAL, so tell them that it's normal for EVERY financial institution to try to save the assets and/or steer them to their internal partners for a "second opinion" on all the work we've already done.

Btw, I used to be a bank manager and a bank financial advisor.

 

[walthamny]

If you go with them and assuming you have properly trained the client on what to expect, there is very little chance something going wrong. It is more likely they were not sure to begin with( something missing in your close) . It is a skill to train the client on what to expect when they arrive at the bank. And that skill only works if they were already sold and decided to go ahead with the purchase. If a $10 an hour teller could change their mind in 3 minutes, they have not decided to buy from you.

During your fact find you should know where the money is and how the client feels about the bank. During your close, you should present in a way that covers the clients feelings with the bank and also explain why an annuity is superior to CD/checking. In most cases, clients should keep some with the bank, some with the annuity anyway.

 

[Norwayguy]

Why the certified check personal check is fine eliminating the problem.

 

[DHK]

Not for a qualified plan rollover.

 

[Hereforthebeer]

Client only has a savings account with them no checking

 

[scagnt83]

Not for a qualified plan rollover.

Since when?

For a Direct Transfer it must be a Cashiers Check.

But for a Rollover, it can be a personal check... unless something has changed that I'm not aware of. I usually try to avoid a true Rollover, but Ive done them with personal checks in the past.

 

[DHK]

I apologize for my imprecise wording. You are correct.

 

[scagnt83]

I apologize for my imprecise wording. You are correct.

No worries. I wasnt trying to nit pick, just didnt know if things had changed or not. No telling these days... lol. Thought maybe that was snuck into the new DOL regs and I didnt know it.

 

[jasperjohns]

Hmmmm...well most carriers will not take cashiers checks as a form of deposit. BUt I agree banks are a royal pain in the ass. Simply avoid them. A client should be writing a personal check to fund a annuity. The only other way a bank gets involved is for a med. sig guarantee, which you can avoid by using your FMO (if you are with a large one) or if money is coming from a CD. Moving money from a CD is pretty easy but you have to explain to the client that banks do not like losing money and will say anything to keep your money.
Dealing with banks is a complex topic feel free to IM me with a specific situation and I will try to help.